Standard company insurance policies do not often cover the following risks:
- Compensation for work-related injuries or illnesses is provided through workers' compensation insurance, which is mandated by law for most businesses.
- Insurance against allegations of carelessness made against service providers and professionals is covered by “professional liability” policies.
- The Proper Response to a car accident while Driving for
- business reasons, you will be financially protected by commercial vehicle coverage.
- Small companies often must get insurance against floods and earthquakes as two separate specialist policies.
- EPLI, or insurance against accusations of discrimination in the workplace, protects your company against lawsuits alleging wrongdoing on the part of your employees.
- Commercial car insurance, professional liability insurance (sometimes called Errors and Omissions insurance), workers' compensation insurance, and health and disability insurance are not included in a company owner's policy.
- Professional services, cars, and workers all need their insurance policies.
Where does a BOP have limitations?
Even though having one policy that covers multiple hazards can be helpful, more than a business owner's policy is needed for a startup.
In particular, the following are not included in a BOP:
Injuries on the Job
Employees who get hurt on the job may turn to workers' compensation insurance to help pay for their medical care, rehabilitation, and lost income. Having workers makes this a legal requirement in most places.
Discrimination claims filed by employees
Legal fees associated with harassment, discrimination, or wrongful termination claims may be covered by employment practices liability insurance (EPLI).
Commercial vehicles
Business cards are protected by commercial auto insurance. When the vehicle is owned by your business or is used primarily for business, this is a legal requirement in most states.
Payment records were destroyed.
If your client database is lost in a disaster like a fire, you can have problems being paid. With an accounts receivable endorsement, commercial property insurance will pay to collect overdue payments.
